BMW AG : equity valuation
Autor(a) principal: | |
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Data de Publicação: | 2015 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/18323 |
Resumo: | The main goal of this master thesis to is compute the most accurate common share price for Bayerische Motoren Werke (BMW) at the date of 31st December 2014. For that, a review of relevant literature was done to find the Discounted Cash Flows valuation model, with the Weighted Average Cost of Capital (WACC) as the discount rate, as the most commonly used and appropriate to be applied for such purpose. With a WACC of 3,23%, the result was market capitalization of 71 409,21 million Euros and price per share of 108,77€. The multiples approach was also used both as a benchmark that confirmed the results of the mentioned valuation and as a means of proving the group’s over performance when compared to its most relevant peers. This makes one believe that BMW is being undervalued by the market, given a price at time of valuation of 89,77€, making it a good investment opportunity. A “BUY” recommendation is the result of this master thesis, taking into consideration that macroeconomic effects may have significant influence. Nevertheless, it is expected that only with either a decrease in perpetuity growth rate of 18,5% or an increase in WACC of 7,7% will the above statement not hold. Also, it is believed that with a 95% confidence level, price per share of BMW will not go below 100,39€. |
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BMW AG : equity valuationDomínio/Área Científica::Ciências Sociais::Economia e GestãoThe main goal of this master thesis to is compute the most accurate common share price for Bayerische Motoren Werke (BMW) at the date of 31st December 2014. For that, a review of relevant literature was done to find the Discounted Cash Flows valuation model, with the Weighted Average Cost of Capital (WACC) as the discount rate, as the most commonly used and appropriate to be applied for such purpose. With a WACC of 3,23%, the result was market capitalization of 71 409,21 million Euros and price per share of 108,77€. The multiples approach was also used both as a benchmark that confirmed the results of the mentioned valuation and as a means of proving the group’s over performance when compared to its most relevant peers. This makes one believe that BMW is being undervalued by the market, given a price at time of valuation of 89,77€, making it a good investment opportunity. A “BUY” recommendation is the result of this master thesis, taking into consideration that macroeconomic effects may have significant influence. Nevertheless, it is expected that only with either a decrease in perpetuity growth rate of 18,5% or an increase in WACC of 7,7% will the above statement not hold. Also, it is believed that with a 95% confidence level, price per share of BMW will not go below 100,39€.Martins, José Carlos TudelaVeritati - Repositório Institucional da Universidade Católica PortuguesaCosta, João António Ferro da2015-09-23T09:18:09Z2015-07-1020152015-07-10T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/18323TID:201170841enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-02-20T01:32:06Zoai:repositorio.ucp.pt:10400.14/18323Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:15:18.088084Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
BMW AG : equity valuation |
title |
BMW AG : equity valuation |
spellingShingle |
BMW AG : equity valuation Costa, João António Ferro da Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
BMW AG : equity valuation |
title_full |
BMW AG : equity valuation |
title_fullStr |
BMW AG : equity valuation |
title_full_unstemmed |
BMW AG : equity valuation |
title_sort |
BMW AG : equity valuation |
author |
Costa, João António Ferro da |
author_facet |
Costa, João António Ferro da |
author_role |
author |
dc.contributor.none.fl_str_mv |
Martins, José Carlos Tudela Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Costa, João António Ferro da |
dc.subject.por.fl_str_mv |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
The main goal of this master thesis to is compute the most accurate common share price for Bayerische Motoren Werke (BMW) at the date of 31st December 2014. For that, a review of relevant literature was done to find the Discounted Cash Flows valuation model, with the Weighted Average Cost of Capital (WACC) as the discount rate, as the most commonly used and appropriate to be applied for such purpose. With a WACC of 3,23%, the result was market capitalization of 71 409,21 million Euros and price per share of 108,77€. The multiples approach was also used both as a benchmark that confirmed the results of the mentioned valuation and as a means of proving the group’s over performance when compared to its most relevant peers. This makes one believe that BMW is being undervalued by the market, given a price at time of valuation of 89,77€, making it a good investment opportunity. A “BUY” recommendation is the result of this master thesis, taking into consideration that macroeconomic effects may have significant influence. Nevertheless, it is expected that only with either a decrease in perpetuity growth rate of 18,5% or an increase in WACC of 7,7% will the above statement not hold. Also, it is believed that with a 95% confidence level, price per share of BMW will not go below 100,39€. |
publishDate |
2015 |
dc.date.none.fl_str_mv |
2015-09-23T09:18:09Z 2015-07-10 2015 2015-07-10T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/18323 TID:201170841 |
url |
http://hdl.handle.net/10400.14/18323 |
identifier_str_mv |
TID:201170841 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
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info:eu-repo/semantics/openAccess |
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openAccess |
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application/pdf |
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reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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